FOR DELIVERY: 9:30 A.M., E.S.T.
FRIDAY, DECEMBER 5, 1997
Advance copies of this statement are made available to the
press under lock-up conditions with the explicit
understanding that the data are embargoed until 8:30 a.m.
Eastern Standard Time.
Statement of
Katharine G. Abraham
Commissioner
Bureau of Labor Statistics
Friday, December 5, 1997
Good morning. I am pleased to have this opportunity
to comment on the employment and unemployment data that we
released this morning.
Employment rose sharply in November, and the
unemployment rate was little changed at 4.6 percent.
The number of payroll jobs as measured by our
establishment survey grew by 404,000 over the month. Gains
were widespread in the private sector with especially large
increases occurring in services, retail trade, and
manufacturing. In the goods-producing sector, construction
employment rose by 29,000, despite unusually cold weather
during the November survey period. Manufacturing added
44,000 jobs, the third month out of the last four in which
it has had a large increase. More than 200,000
manufacturing jobs have been added since the industry’s
last employment trough in September 1996. Electronic
components, industrial machinery, and aircraft and parts
contributed the most to this increase, and continued to add
jobs in November. Over-the-month increases also were
registered in auto manufacturing, food processing, and
printing and publishing.
Services industry employment rose by 180,000; close to
a third of this increase was in help supply services. Two
relatively small industries continued their rapid
expansion: engineering and management services grew by
15,000 jobs, and computer and data processing services
added 13,000 jobs. Elsewhere, health services added 21,000
jobs, largely in doctors’ offices and hospitals.
Employment in amusement and recreation services showed its
first large increase since July.
Retail employment grew by 105,000 as strong holiday
hiring boosted employment in department stores and in
miscellaneous retail establishments, which include gift
shops, book stores, and catalogue sales, among other types
of retailers. Eating and drinking places had its first
large increase since July. Furniture and home furnishing
stores also contributed to the retail employment rise, as
did auto dealers and service stations.
In other industries, wholesale trade added 24,000
jobs, mostly in durable goods. This was the second
straight month of stronger-than-average wholesale trade
employment gains, mirroring strength in manufacturing.
Finance, insurance, and real estate payrolls added 19,000
jobs. Gains in finance continued to outpace those in the
other two components of this grouping. Employment in
government was little changed overall. A decline of 12,000
in Federal nonpostal employment followed an unusual
increase (on a seasonally adjusted basis) of about the same
magnitude in October.
Average hourly earnings of production or
nonsupervisory workers posted a 7-cent increase in
November. Over the last 3 months, average hourly earnings
have grown by 16 cents. Over the year, hourly earnings
have increased by 4.1 percent. Average weekly hours grew
by 0.3 hour in November to 34.8 hours.
Turning to data from the household survey, the
unemployment rate was little changed over the month at 4.6
percent. It had been 4.7 percent in October, and 4.9
percent in September. The unemployment rate for adult men
declined to 3.8 percent in November, and the rates for
whites and Hispanics also fell. The rate for adult women,
which had fallen from 4.4 percent in September to 4.0
percent in October, was unchanged in November.
Civilian employment, which had barely risen between
May and October, jumped by 671,000 in November to 130.6
million. The employment-to-population ratio, the percent
of the population that is employed, rose to a record 64.0
percent.
In summary, employment rose sharply in November, with
gains that were widespread across most of the private
sector. Hourly earnings continued to increase. The
unemployment rate, at 4.6 percent, was at the lowest level
in nearly a quarter of a century.
My colleagues and I now would be glad to respond to
your questions.
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